USA Today:

Kodak will close its online photo service on July 2 after a federal bankruptcy judge approved selling the business to Shutterfly for $23.8 million. Shutterfly Inc. emerged last month as the sole bidder for Eastman Kodak Co.’s Kodak Gallery. The judge issued an order approving the sale last week.

Kodak has sent out an e-mail to Kodak Gallery account holders advising them of the change. Users have until May 28th to opt out of the transition, which will happen on July 2.